HIH Insurance Liquidation and Breach of Duty by Directors Background There are few surprises when it comes to insurance‚ but when they do come; they nearly always bring bad news. Such was the demise of HIH Insurance Limited (HIH): both a surprise (to many) and very bad news for many policyholders. On Thursday‚ 15 March 2001‚ HIH received approval from the NSW Supreme Court to place HIH into provisional liquidation. Tony McGrath of KPMG was appointed as provisional liquidator to HIH and 17
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2. Analysis. 2 2.1 U.K. 3 2.2 U.S.A. 3 2.3 FAI. 4 2.4 HIH accounts. 5 List of references. 7 1. Introduction. On March 15 March 2001 Australia’s second largest insurer‚ HIH collapsed with debts in excess of A$5billion. This report intends to discuss some of HIH’s business objectives and creative accounting practices that may have attributed to the collapse of the company. 1.1 History. HIH began operating in Australia in 1968 under the name C.E. Heath plc‚ an English based insurance company
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Collapse of HIH Insurance KEY FINDINGS The collapse of HIH Insurance (HIH) in early 2001 will significantly affect NSW Government finances: ♦ A $600 million liability (estimated) has been included in the 2001-02 NSW Budget. This amount relates to a support package set up by the NSW Government for NSW residents who have HIH Compulsory Third Party (CTP) and home-owner warranty insurance claims. NSW public sector agencies have $30.5 million of outstanding and potential claims with HIH Insurance. A $28 million
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HIH Insurance – Due to the high risky areas the company has incurred the following losses: - The company has acquired the business of the FAI Insurance which is involved in the more risky business of the insurance. The company has incurred the considerable damage claims. - The company has entered into the insurance of film financing services which has led to the loss of dollar hundred million in the year. - Due to the insurance business in the field of natural disasters‚ the company has incurred
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asic v adler hih insurance HIH Insurance was founded in 1968 by Ray Williams and Michael Payne‚ which was known as "M W Payne Underwriting Agency Pty Ltd". However‚ their company was acquired in 1971 by a British company called CE Heath PLC and appointed Ray Williams to be the board of CE Heath PLC in 1980. In 1989‚ the business operations of CE Heath PLC were transferred to CE Heath International Holdings Ltd. And the company floated on the Australian Stock Exchange in 1992. After 3 years
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HIH Insurance Company Background HIH was originally found in 1968 by Ray Williams‚ then was acquired by British company CE Health PLC in 1971‚ and renamed as "HIH" in 1995. Before its collapse‚ HIH was the second largest insurance company in Australia‚ and covered several insurance segments‚ including worker’s compensation‚ public and private liability‚ property‚ industrial and commercial insurance. It also expanded globally into the US and UK markets. On March 15‚ 2001‚ HIH insurance was
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spelling and grammar mistakes. Assignment: The collapse of HIH has served notice on ASIC and the Australian Government that insufficient attention is being paid on a continuing basis to the failures of corporate governance in Australia‚ especially from the perspective of directors’ duties. The situation does not seem to have improved since the collapse. Comment on this statement. Continued overpage: Caution: This is broader than just HIH. It is an assignment ondirectors’ duties‚ of which the
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In the first year here at IHT Insurance Agency‚ I feel that I have few strengths due to I am still learning the carriers‚ overall operations and some of the moving parts here at IHT. Over this past year I feel that I have gained the knowledge of the carriers and have successfully implemented that knowledge to our agents. Taylor and I worked together to come up with the onboarding procedures to make sure that everything is completed and the order of which the process needs to go and set up those procedures
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Today I am going to talk about HIH insurance’s Corporate accounting scandals. Background: HIH insurance was formed as a small insurance company in 1968. Its main business was to underwrite workers compensation insurance in Australia. The company expanded its operations into property‚ commercial and professional liability from the mid 1980s. During this period‚ it also moved into the UK and the US insurance markets. In the US‚ the focus was on workers compensation insurance. Public liability and professional
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Analysis of the industry’s environment (SWOT Analysis) HDFC and Standard Life first came together for a possible joint venture‚ to enter the life Insurance market‚ in January 1995. It was clear from the outset that both companies shared similar values and beliefs and a strong relationship quickly formed. In October 1995‚ the companies signed a 3-year joint venture agreement. STRENGTH 1. Domestic image of HDFC supported by Prudential’s international image is strength of the company. 2. Strong
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